TGI sees rise in robotics workforce
Tax perks, rising labour costs cited
Thailand’s robotics imports are projected to increase by double digits in percentage terms over the next two years, thanks to the government’s new tax incentives and pressure from high labour costs, says the Thai-German Institute (TGI).
Epson Thailand recently spent millions of baht to open the Epson Robotics Innovation Centre in collaboration with the TGI.
“Robotics imports should continue to grow in the next two years and we estimate they will reach 4,500 units by 2019, up from 3,700 units in 2014,” said Varin Rodphothong, vice-president for manufacturing automation and the robotics centre of the TGI.
The TGI estimated the shipments could reach 5,000-6,000 units in 2019 as the cabinet approved tax incentives for robotics users in August because it is a high-growth sector that is part of the government’s S-curve scheme.
The forecast for higher imports is also bolstered by the government’s 20-billionbaht SME fund supporting robotics and automation use for small and mediumsized enterprises, dubbed “One robot one factory”.
A drop in the price of basic robotics units, from over 1 million baht the past two years to about 600,000 baht, has attracted more investments in manufacturing in automation systems.
In 2014, the market value of robotics units was at least 5.5 billion baht, and is estimated to reach 6.7 billion in 2019.
Rising labour costs in Thailand is another reason local manufacturers have turned to more advanced automation.
“After the robotics system is implemented, it can reduce workforce by 2-15 people in one production line and get a return on investment within two years,” said Mr Varin.
Somwang Boonrakcharoen, TGI president, said Thailand was the largest user of robotics technology in Asean and the fifth in Asia, after China, Japan, South Korea and Taiwan, and ranked eighth globally in 2014.
But in terms of density in 2015, Thailand has 53 robots per 10,000 employees, compared with the global average of 69.
Mr Somwang said global robotics production has rapidly risen from 8.8 million units in 2015 to a predicted 61.4 million units in 2020, an annual growth of 40%.
The workforce doing repetitive and dangerous tasks will be replaced by robots in order to increase productivity and reduce waste. The technology will replace humans, but it will also mean humans working with robots.
Mr Somwang said the TGI and seven universities and institutes will collaborate in a public-private partnership at the Centre of Robotics Excellence (CoRE). The five-year plan covers the creation of 150 applications of industrial prototypes, 25,000 people in human resource development and an increase of qualified robotics system integrators from 200 to 1,400 within five years.
CoRE estimates a budget of 6 billion baht in five years.
“Thai manufacturers, especially SMEs, need to shift to higher valuebased production from labour intensive to compete with neighbouring countries,” said Yungyong Muneemongkoltorn, general manager of Epson Thailand.
The country has become a strategic market for Epson robotics due to its strong manufacturing base and government incentives, such as 50% corporate tax reduction for entrepreneurs who embrace robotics and automation, soft loan packages of PPP development fund, he said.
The company set up a local team this year to develop and educate the market about the robotics technology. The Epson Robotics Innovation Centre aims to serve its partners and potential customers, said Mr Yungyong.
Epson’s robotics technology targets SME manufacturing in automotive, electronics, food and beverage, consumer and medical products.